Futures Pare Gains On Lowered GDP

By Teresa Rivas

Futures were trading higher on Wednesday morning, although investors retreated somewhat on news that the nation’s gross domestic product grew more slowly in the first quarter than previously estimated.

This morning, the government said gross domestic product increased 1.8% from January to March, down from an earlier estimate of 2.4%. The reduction was largely due to less consumer spending on services and softer business investment. Economists were expecting the figure to remain unchanged. The increase in consumer spending, the most important contributor to economic growth, was lowered to 2.6% from 3.4%.

Monsanto (MON) lost 0.7% after reporting a mixed quarter. Earnings per share came in a nickel ahead of expectations, but is revenue was light. It guided fiscal 2013 EPS below consensus, but reaffirmed ongoing earnings outlook of greater than 20% growth in FY13 and mid-teens growth for fiscal 2014.

Smith & Wesson (SWHC) fell 0.2% after reporting fiscal fourth quarter profits that more than doubled amid continued strong demand that resulted in double-digit sales growth. The company also issued fiscal 2014 forecasts that beat expectations.

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